The Korea Securities Depository has begun building clearing and settlement infrastructure for over-the-counter trading of unlisted stocks and fractional investments.

According to the KSD on August 7, the over-the-counter clearing and settlement infrastructure will focus on an electronic securities-based framework, proactive implementation of a T+1 day settlement cycle, and the establishment of an independent system with scalability in mind.

The new OTC clearing and settlement infrastructure targets the current electronic securities-based markets for unlisted stocks and fractional investments, including deposited securities. Regarding distribution and settlement of token securities, KSD plans to monitor future government policies before reviewing any related actions.

To promote the development of OTC markets, the settlement cycle will be shortened by one day compared to the legacy securities market, improving investor convenience and capital liquidity. This will serve as a testbed for analyzing market and system impact ahead of the broader transition to a T+1 day settlement cycle in the securities market.

The infrastructure will be developed as an independent system (module), separate from existing clearing and settlement infrastructures for stock markets, institutional settlements, and K-OTC settlements. Apart from securing stability for clearing and settlement, the new foundation is also expected to support a variety of products, such as token securities, in the future.

Under the current sandbox system, buyers and sellers could only complete trades if their settlement-linked accounts were opened with the same securities company. Once the KSD enables inter-broker settlements, trades will be possible even if buyers and sellers use linked accounts at different securities companies. This is expected to enhance market efficiency through improved transaction convenience and liquidity concentration.

The KSD stated, "By establishing a stable and efficient clearing and settlement infrastructure, we will faithfully implement the policies of the Financial Services Commission and strive to contribute to market revitalization."

Clearstream has successfully completed the pilot issuance of a dematerialised eurobond.

The milestone saw Clearstream Banking act as issuer, with Deutsche Bank’s London branch as issuing and paying agent, UBS Investment Bank as dealer, and Citigroup Global Markets as arranger.

The transaction involved a Euro-Commercial Paper with a nominal amount of €50 million.

This primary issuance was enabled by the new issuance model from the two international central securities depositories, Clearstream and Euroclear, in March 2026.

It marks a key step ahead of the model’s full rollout in November 2026, when issuers incorporated outside the UK will be able to issue dematerialised debt securities under English law.

It also lays the groundwork for adopting new digital‑market technologies, including Clearstream’s D7 platform.

UK regulators are preparing a framework for tokenised gold as part of plans to encourage the digitisation of financial markets and to protect the dominance of London in global bullion trading.

The Financial Conduct Authority has talked to industry members, including big banks, about ways it could regulate tokenised gold in order to encourage growth in the market, according to people familiar with the watchdog’s plans.

The early discussions are part of the UK’s wider efforts to digitise wholesale financial markets and come as London’s gold market dominance is being challenged by China.

Tokenised gold involves creating digital tokens that represent ownership rights in physical gold. Gold bars are held by the issuer as a backing asset for the tokens.

The FCA has been seeking feedback on how tokenised gold could be used as collateral in wholesale markets and it is expected to make an announcement on developing regulatory standards in this area in the next few months, one of the people said.

London dominates the global gold market with about 70 per cent of trading volumes, according to industry body the World Gold Council, but it is facing competition from China, which is seeking to become a bullion hub.

“There’s huge competitive pressure from Shanghai and Hong Kong . . . Shanghai wants to become the wholesale hub for the gold market,” one of the people said, adding that if London does not modernise its gold market through measures including tokenisation, other venues may take the lead.

They added that discussions included how the FCA could oversee tokenised gold since it does not regulate trading in physical gold, although it does set rules for gold-based derivatives and exchange-traded products listed on public markets. The FCA declined to comment. Earlier this year the FCA and the Bank of England’s Prudential Regulation Authority said they planned to “set out further policy for consideration later this year on how tokenised collateral can operate under the existing regulatory framework”.

The FCA is seeking to allow companies to use blockchain technology across financial markets to improve the speed, efficiency and security of how financial assets are traded, settled, cleared and held.

Chris Woolard, the UK Treasury’s newly-appointed wholesale digital markets champion, told the FT last month that the country could gain a £33bn economic boost if it accelerated plans to digitise financial markets.

Since HSBC launched a tokenised gold product just over two years ago that is only available to its retail customers in Hong Kong, more than $2.2bn of it has been traded in more than 276,000 transactions, the bank said.

The World Gold Council said this year that digital gold would mean ownership “would no longer be constrained by bar sizes, vault locations or fragmented settlement mechanisms”.

The price of gold soared to a record high of nearly $5,595 a troy ounce in January but has since fallen to about $4,300 as the frenzy has faded.

Retail demand for corporate bonds has been witnessing positive growth since the launch of online bond platforms, Sameer Patil, Chief Business Officer at National Securities Depository Limited, said in an exclusive conversation withon the sidelines of the Great Indian Bond Festival at National Stock Exchange in Mumbai on Tuesday.

Patil said online bond platforms have helped support the growth in demand accounts, although greater awareness about the corporate bond market will be needed for this trend to spread across the country.

"Since OBPP (Online Bond Platform Provider) platforms were launched, we are seeing very positive growth as far as demand accounts," Patil said.

He, however, noted that it would take some time for the benefits of online bond platforms and awareness of corporate bonds to reach investors across the country.

"Definitely it will take some time though for this to go to the length and breadth of the country for the awareness on corporate bond markets, but definitely it is seeing a positive growth," he said.

Online Bond Platform Providers (OBPPs) provide retail investors with online access to the bond market, making it easier for them to participate in corporate bonds.

Patil said the growth in retail participation would also require wider awareness about the corporate bond market across different parts of the country.

On the question of whether depository infrastructure is prepared for a possible increase in small-ticket bond transfers, including bonds with a Rs 1,000 ticket size, Patil said NSDL would be ready if such a regulation is introduced.

"As and when there will be any regulation of that sort, the depositors will always be ready to serve the nation," he said.

Patil also said OBPPs can provide retail investors with easier access to the bond market. "OBPP platform, basically it's an online bond platform, and it will provide easy access to all the retail investors to come forward and participate in the bond market," he said.

On the role of technology in securing custody and settlement for Securitised Debt Instruments, Patil said NSDL would continue to invest in technology and cybersecurity.

Patil also highlighted NSDL's efforts to increase awareness and promote bond adoption across the country, including in Tier-2 and Tier-3 cities.

He said the depository conducts various programmes for investor awareness across the country and would continue such initiatives.